Drop in sales in the German machinery industry in August does not really surprise as such typically happens in sideways ranges

The current drop in sales matches completely the analyzes the Quest Trend Magazine has been publishing for 1.5 years.
Drop in domestic and foreign sales of the German machinery industry 2014 (PresseBox) (Bochum, ) Domestic and foreign sales of the German machinery industry (data from the Federal Statistical Office) achieved their crisis lows in 2009. Then a dynamic catching up hunt started lasting until 2012. Since then sales of the machinery industry have been running neither in an upward trend, nor in a downtrend. Rather a trendless up and down is typical with sales varying around an average level. This average level of total sales since 2012 is about 121.4 index points according to the Quest Trend Magazine.

While sales of the machinery industry lay still slightly above the average line in July, they plunged below this line in August. This up and down does not really surprise the readers of the Quest Trend Magazine. That is why the ups and downs are typical for the sideways movement that has been continuing since 2012.

The conclusions for the machinery industry and the supplying automation technology are that domestic and foreign sales of the German machinery industry will stick to the analyzed process in foreseeable future.

This prospect is also supported by the worldwide industrial production. The latter could not exceed the pre-crisis level in a stable manner yet. Important countries for machine exports are showing a non-uniform development. Germany and the USA have currently exceeded their pre-crisis level; China, Mexico, Indonesia, Turkey, South Korea have clearly exceeded theirs; Russia, Brazil, India are stagnating; finally the countries of the European Union are still noticeably distant from their pre-crisis level.

So also for world-economic reasons a continuation of the phase of stagnation is probable. Positive tendencies are obstructed by increasing protectionism in the export markets of the machinery industry. And increasing political tensions like the Ukraine crisis are in turn based on the predominantly stagnating world economy.

The link to the report is http://www.quest-trendmagazine.com/...


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Thomas Quest
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